Author Topic: Kraft in £10.2bn move for Cadbury  (Read 4922 times)

Offline 623058

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Kraft in £10.2bn move for Cadbury
« on: September 07, 2009, 08:56:57 am »
Not sure what to make of this!

http://news.bbc.co.uk/1/hi/business/8241056.stm
Quote
US giant Kraft Foods has proposed buying UK confectionery firm Cadbury in a £10.2bn ($16.7bn) move.

Kraft said that the purchase of the maker of Dairy Milk would protect jobs in the UK - including saving a factory earmarked for closure.

Cadbury, whose shares leapt 36% on the news, had "unequivocally" rejected the approach, Kraft said.

The US firm added it wanted to create "a global powerhouse in snacks, confectionery and quick meals".

Distribution savings

As well as Dairy Milk, Cadbury also owns the Green & Black's chocolate brand and Halls lozenges, Trident and Dentyne gum brands, and liquorice allsorts maker Bassett's. It span off its drinks division as a separate business last year.

   
We are eager to build upon Cadbury's iconic brands and strong British heritage through increased investment and innovation
Irene Rosenfeld
Kraft Food chairman

Check Cadbury shares

Kraft's brands include Kenco coffee, Oreo biscuits, Terry's Chocolate Orange and Toblerone as well as cheese products such as Philadelphia and Dairylea.

The proposed deal would allow up to $625m a year to be saved in distribution, marketing and product development costs, Kraft said.

It added that Cadbury's brands were "highly complementary" to its portfolio and "would benefit from Kraft Foods' global scope and scale and array of proprietary technologies and processes".

'Iconic brands'

"As we have done, Cadbury has built wonderful brands by focusing on quality, innovation and marketing, but we believe the next stage in Cadbury's development will be challenging, given the increased importance of scale in the industry." said Kraft chairman Irene Rosenfeld.

Kraft product
The Kraft logo is familiar on shop shelves in the UK and the US

"We are eager to build upon Cadbury's iconic brands and strong British heritage through increased investment and innovation. We have great respect and admiration for Cadbury, its employees, its leadership and its proud heritage."

Industry analysts have been speculating that there could be consolidation in the food sector.

Kraft said its possible offer - based on paying 745 pence for every Cadbury's share - was a 31% premium to its closing price last week and 42% more than the firm's shares were worth in early July, when speculation about possible deals in the sector intensified.

In a letter to Cadbury's, Ms Rosenfeld said it would be able to continue to operate its Somerdale factory in Keynsham, near Bristol, which is set to be closed, and also invest in its plant in Bournville, Birmingham, "thereby preserving UK manufacturing jobs".

drterror666

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Re: Kraft in £10.2bn move for Cadbury
« Reply #1 on: September 07, 2009, 06:02:03 pm »
Well, if it means jobs are saved...

Offline chocadmin

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Re: Kraft in £10.2bn move for Cadbury
« Reply #2 on: September 07, 2009, 08:05:27 pm »
Yay for jobs, Boo for the likely detrimental impact on our beloved chocolate industry - don't expect innovation if the number of competitors goes down.
All image submissions welcome for Kradbury Dairy-bone :P

Offline oldspice

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Re: Kraft in £10.2bn move for Cadbury
« Reply #3 on: September 08, 2009, 06:51:55 am »
Dairy Milk with Dairylea??

Flat, rubbery chocolate slices?
Old but spicey!

Offline smurfboy

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Re: Kraft in £10.2bn move for Cadbury
« Reply #4 on: September 08, 2009, 01:20:22 pm »

Flat, rubbery chocolate slices?

I thought Nestle already made those...

Normally things like this don't bother me, but Cadbury just seems such an intrinsically British company. I don't like the thought of Swiss Cadbury :(
Who needs karma when you know you're great already?

Offline chocadmin

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Re: Kraft in £10.2bn move for Cadbury
« Reply #5 on: September 08, 2009, 04:54:33 pm »
Current bids and suggestions only allow an American Cadbury - a truly terrifying proposition (the only teeny tiny benefit I can see is some kind of mashup between Oreo's and Dairy Milk :P )
Join the 'Keep Cadbury Independent' Facebook group now :)
http://www.facebook.com/group.php?gid=130663037715

Offline oldspice

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Re: Kraft in £10.2bn move for Cadbury
« Reply #6 on: September 08, 2009, 06:08:26 pm »

Flat, rubbery chocolate slices?

I thought Nestle already made those...

Normally things like this don't bother me, but Cadbury just seems such an intrinsically British company. I don't like the thought of Swiss Cadbury :(

I hope they do a better job than Nestle did with Rowntrees. Take-overs and merges like this are best when things are made better - not worse!
Old but spicey!

drterror666

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Re: Kraft in £10.2bn move for Cadbury
« Reply #7 on: September 09, 2009, 12:19:08 pm »
Kraft are now out of the bidding.  Looks like Hershey's are trying now.  YUK!!!

Offline chocadmin

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Re: Kraft in £10.2bn move for Cadbury
« Reply #8 on: September 09, 2009, 06:58:59 pm »
Think this one might run for a little while yet

Offline 623058

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Re: Kraft in £10.2bn move for Cadbury
« Reply #9 on: September 09, 2009, 07:36:28 pm »
its a shame Rowntrees. and caburys never got into the same bed OR better Gaxley!

Offline Cherry_Ripe

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Re: Kraft in £10.2bn move for Cadbury
« Reply #10 on: September 10, 2009, 08:24:26 am »
I thought Cadbury used to own Hershey's?

Offline smurfboy

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Re: Kraft in £10.2bn move for Cadbury
« Reply #11 on: September 10, 2009, 05:16:41 pm »
I think they licence the Cadbury name to them for use in the US.
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Offline chocadmin

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Re: Kraft in £10.2bn move for Cadbury
« Reply #12 on: September 10, 2009, 09:56:59 pm »
Indeed they do, stay away from the hershey licenced dairy milk...

drterror666

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Re: Kraft in £10.2bn move for Cadbury
« Reply #13 on: September 11, 2009, 12:49:49 pm »
Does Hershey DM taste like Hershey's choccy bars then?

Offline chocadmin

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Re: Kraft in £10.2bn move for Cadbury
« Reply #14 on: September 11, 2009, 10:25:07 pm »
Not exactly (don't remember it being quite that bad), but it doesn't taste like dairy milk either.
I tend to stick to mars products in USA (they taste no different and there's more choice), failing that a good old kitkat ;)